It does control the shape of the industry. HTML 5 is pretty huge and there are lots of 'Apps' and web services which are essentially complex HTML+Javascript pages. The catch is that the standards finally did catch on and rather than lose out to Netscape, they lost out to standards compliant sites.

Sadly, Microsoft has been by far the slowest company to adopt standards and they've deliberately left 40% of their users out of the upgrade cycle.

I think that's the point. They maneuvered themself into "the standard" instead of allowing someone else to do it. There is a reason they still have 90% (argue for other figures if you like, it's still huge) of the desktop OS, and it's not just because of the OS. It's because of the interlock between Word, Excel, and the OS, which begat an almost monopoly platform,c hich begat proprietary softwares for medicine, metallurgy and everything in between.

If all those other softwares were platform independent, the OS share would be plummeting much faster than it is.